Square Enix Reports Big Losses

SE cites development cancellations as a reason -- is Final Fantasy XIV at risk?

How might SE’s financial hardships affect the future of Final Fantasy XIV?

Square Enix is cancelling the development of projects in its digital entertainment segment -- does this mean Final Fantasy XIV is on the chopping block?

In a press release issued today, Square Enix revealed its latest financial figures, predicting a loss of 12,000 million yen during the fiscal year ending March 31, 2011. In early February, the company had predicted a profit of 1,000 million yen for that period of time -- that’s a downturn of 13,000 million yen.

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The failed launch of Final Fantasy XIV was not cited as a reason for the downturn. However, Square Enix blamed “more prudent estimates of future cash flows,” a “tightened selection standard” for game titles and “project development cancellation and related losses” as reasons for the deep financial losses. Losses incurred in the wake of the massive earthquake and tsunami that ravaged Japan amounted to 600 million yen.

The company didn’t suffer nearly as much of a loss in sales, which were originally estimated to bring in 130,000 yen but only brought in 125,000 yen. Operating income dipped from an anticipated 8,000 million yen to 7,300 million yen.

Square Enix’s full statement can be read here.

Keep an eye on the Square Enix official forums to see if the Final Fantasy XIV development team addresses this issue directly. These revised earning statements, the continued struggles of FFXIVand the recent hacking of the Playstation Network could spell trouble for the long-term health of the game.

The chance that Final Fantasy XIV would be cancelled now seems unlikely, given all the resources dedicated to developing the game since its release in September. This game may also be Square Enix’s best chance of producing another long-term money maker, especially considering the company has been unwilling to drop Playstation 2 support for Final Fantasy XI to evolve the game for more powerful consoles and gaming computers.

Unless the development team addresses this issue head-on, these revised earnings will definitely increase concerns that Final Fantasy XIV is on the chopping block.


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# May 12 2011 at 5:54 PM Rating: Decent
54 posts
Is this Thursday's hot read?
A FFXI remake?
# May 12 2011 at 4:24 PM Rating: Decent
I really enjoy the path this (revised) MMO is headed down. As for FFXI, I played the game for about 6 years and was glad how I left the game. For all of the years of fun I had playing it, I am ready for something new.

FFXIV is becoming a very good game but it's future really depends on the future customization of it game mechanics and game content. While I do love the way things are shaping up, I don't want to see another version of FFXI either.

FFXIV still has potential of becoming another revolutionary game and can do that simply by putting a lot of good content in the areas already present along with a decent storyline. The way its implemented/introduced is key.

I stil think there is a very bright future for Eorzea.
Read and spread facts please.
# May 12 2011 at 2:10 PM Rating: Good
Thayos, please read it again...

They didn't reveal losing 12 Billion Yen, they FORECASTED the loss of probably 12 Billion Yen. The fiscal year ended, but the actual net loss isn't a fact yet, it's the forecast for what it MIGHT(probably) be.
Read and spread facts please.
# May 12 2011 at 4:30 PM Rating: Excellent
Thanks for that point! Edited the line.

Now, who wants to take bets on whether the losses will be greater than what they re-predicted?
Thayos Redblade
Read and spread facts please.
# May 12 2011 at 9:29 PM Rating: Decent
Wouldn't be too surprised if its gonna be more in the end xD
$ alocation idea?
# May 12 2011 at 11:24 AM Rating: Default
If FFXIV is to be cut and that becomes the last swing to sever the head of this beast what would that funding go to?

I for one like FFXIV and hope to see it take off after that rocky patch of road. Then again I always felt that all the money put into 14 could have just gone into FFXI. Updating the graphics, animations, customization options, end game content, PVP content and even marketing to get FFXI more known to the public would seem more of a logical path, but then again I dont know future plans for 14.

Any other ideas on how this could come out?
$ alocation idea?
# May 12 2011 at 2:18 PM Rating: Decent
Well as they said about them not wanting to drop Playstaion 2 support for FFXI it kind of leaves them in a dead end on graphics enhancing.

As to adding more content they have been. They release a new expansion every other year, and these mini expansions more often. (Though i do prefer the larger expansions over the mini ones.)

But ya if they promoted the game more it may help a lot, but why promote FFXI when they could promote FFXIV. At this point they are more likely to promote FFXIV then FFXI.

At this point i can't see them devoting much money to furthering FFXI beyond keeping it running smoothly and possibly a mini expansion here or there.

I for one hope FFXIV gets better as well. I loved FFXI and will play FFXIV in remembrance and hopefully it will become just like FFXI.
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